Most successful e-commerce brands lose money on their first sale. High-priced gadgets around $100-$150 can absorb a $100 customer acquisition cost, but consumable-focused brands need repeat purchases to turn profitable since their margins can't cover upfront ad spend.
The guys that are crushing it in e-commerce now, are they running profitable front-end Facebook traffic? I think it depends on what kind of products you're selling. If you're selling a gadget, $100, $150, so you can spend $100 to acquire a customer, like you have your COGS, shipping and stuff like that, and still be profitable in the first transaction. But then overall, like for the longevity of business, I think everyone needs to have some kind of like consumable products so the customers come back and buy again. And then for those consumable products, people that strictly sell those, I see that they're losing money on the front end.
How to track independant creators' performance for the products you're selling
